$70 Oil Prices Required for Industry Growth: Occidental CEO

Occidental CEO Vicki Hollub and Pioneer Natural Resources founder Scott Sheffield agree that oil prices need to rise to sustain production growth. According to Hollub, the industry needs crude prices to reach $70 per barrel to continue growing output. This is a significant increase from current levels, where U.S. oil production can be maintained at its current level in the $60 to $65 price range.

Brent crude prices declined by 19% last year due to concerns about oversupply and uncertainty surrounding U.S. trade policy. In response, President Donald Trump called on oil companies to enter Venezuela and boost production there, but executives have warned that this would lead to squeezed profits and less drilling.

Sheffield echoed Hollub's comments, stating that production from the Permian Basin in the U.S. would drop off if crude prices declined to about $50 per barrel. He added that a price range of $50 to $55 per barrel is when investments in the Permian would start reducing.